The Role of Archiving in the SMB Market

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1 The Role of Archiving in the SMB Market An Osterman Research White Paper Published May 2010 SPONSORED BY!!!! Osterman Research, Inc. P.O. Box 1058 Black Diamond, Washington Tel: Fax:

2 Executive Summary In a Small-to-Midsized Business (SMB), messaging is typically the most critical of its various business applications. Because of its ubiquitous reach, has become the preferred way of communicating business proposals, confirming agreements, and even sending purchase orders and invoices. As a result, an organization s body of messages and their attachments contain vital business records and valuable corporate knowledge. The volume of data that passes through a company s messaging system has become so great, however, that many now find it almost unmanageable. Organizations have different reasons for needing a better way to manage storage. Some need more capacity, longer-term retention, user accessibility or some combination of all of these. Some need to upgrade their storage to comply with regulations pertaining to retention of business or government records. Still others seek some assurance of ongoing continuation. BACKUPS! ARCHIVES Most organizations manage their retention by performing regular back-ups of their servers. This helps restrict the size of the information store on the mail server to a level that is optimal for server performance and conducive to regular maintenance. Old messages are removed from the mail server, but are kept on back-up tapes where, if needed, they can be retrieved through a rather laborious and time-consuming serverrestore process. But, because most SMBs do not have automated server restoration and because of the absence of a searchable index when messages are on tape, finding a message from back-ups is usually very time-consuming, cumbersome and costly. Add to this the fact that tapes can deteriorate over time, rendering retrieval of some old information potentially impossible. The need for archiving systems first emerged when organizations in certain industries were advised that they must comply with government regulations for the management of electronic information. The need gained momentum when the Sarbanes Oxley Act (SOA) of 2002 established significant penalties for the officers of publicly owned companies if records management and business reporting were mishandled. However, the need for archiving impacts many organizations that rely on for business communication and document delivery, not just those that are publicly traded or in specific industries like financial services. ABOUT THIS WHITE PAPER Many small-to-midsize businesses face a combination of storage and other management challenges and, as a result, prefer a single solution that can address all of them. This Osterman Research white paper describes the typical storage needs of the SMB and how Jatheon s PnC 2 archiving solutions are ideally suited to these requirements Osterman Research, Inc. 1

3 Just What is Archiving? Use of the term archiving seems to vary considerably. In storage circles, for example, archiving is often used to refer to the removal of data from the operational network. But in an context, a more standardized and specialized definition has evolved: archiving typically refers to the long-term storage of with user access that is not unduly restricted by the age of the data or the location of the repository. Using this definition, a system or process that removes so that it is no longer accessible to even a selected group of users cannot be an archiving solution. To differentiate a searchable archive from one that is offline and/or accessible only to a handful of storage professionals is sometimes referred to as a searchable, useraccessible archive, or an Active Archive. In archiving, the word archive implies an Active Archive. THERE ARE SEVERAL REASONS TO IMPLEMENT AN ACTIVE ARCHIVE There are a number of reasons why organizations now find they must retain messages: First and most obvious is the fact that communication is no longer considered temporary. messages that contain important business records with value to an organization must be retained for long periods. Second, more corporate data exists in messages and their attachments than in any other data repository. Third, users now expect on-line access to documents that are years old and they demand the same access to their data. Finally, archiving permits the size of mailboxes on servers to be limited in order maximize mail server performance, while at the same time giving users mailboxes that seem to be infinitely large. IMPORTANT CONSIDERATIONS WHEN EVALUATING ARCHIVING SYSTEMS There are a number of important things that decision makers should consider as they evaluate archiving systems. Among them are: Mail system independence If messages are stored as vendor-neutral files, customers are given the freedom to choose a storage system best suited to their functional and budgetary requirements independently of whatever system they use today. Further, this gives customers the option of updating their server in the future and being assured that they will be able to access archived content. Unlimited storage Given that use continues to increase at roughly 25-30% per year, it is important to have very large amounts of storage available for archival purposes, 2010 Osterman Research, Inc. 2

4 particularly where must be stored for many years or indefinitely. A corollary to large amount of storage available in the archive is the corresponding reduction of storage on servers. By minimizing the size of the server message store, the performance and reliability of the server can be improved and backups can be simplified. The easiest way to reduce ongoing mail-server storage is to reduce the size of mailbox quotas assigned to users. For example, reducing the average mailbox quota from 200Mb to 100Mb for each user cuts server storage in half, while providing users with potentially limitless storage as content is moved into the archive and off of the server. Flexible search options Users should be able to search for messages using almost any criteria on which they need to search, including date, sender, recipient, bcc field, stock symbol, size of message, attachment name, words in the subject line, words in the message body or attachments, etc. This allows users to extract only the content they require without lots of extraneous s being added to the information they were seeking. Good performance Clearly, good performance is a must. Setting up a search and having it takes hours to complete is a bane to productivity and will discourage users from employing the archive. Why Archive ? There are four primary reasons that SMBs need to archive COMPLIANCE OBLIGATIONS contains a growing proportion of business records that must be preserved for long periods. Further, is increasingly requested during discovery proceedings because of the Federal Rules of Civil Procedure (FRCP) and related issues. As a result, it is critical that be made available for legal discovery purposes. Formally enacted in 1938, the FRCP governs court procedures for civil suits filed in the US federal courts. In a recent update it now states that the discovery of electronically stored information, including messages, instant messages, word processing files, spreadsheets, and so on, is now a mandatory point of discussion. When subpoenaed for information, the responding party has a maximum of 30 days to respond according to Rule 34. The current version (2007) of the rules requires the responding party to [ ] produce documents as they are kept in the ordinary course of business [ ] Rule 34: 34(b)(2)(E)(i). This means that if the responding party uses data online and searches it electronically, they cannot supply that data as hard copy. The amendment also requires opposing parties to discuss e-discovery issues within 120 days of a lawsuit's filing Osterman Research, Inc. 3

5 When a hold on data is required, it is imperative that an organization immediately be able to begin preserving all relevant data, such as all sent from senior managers to specific individuals or clients. An archiving system allows organizations to immediately place a hold on data when requested by a court or on the advice of legal counsel. If an organization is not able to adequately place a hold on data when required, it can encounter a variety of serious consequences, ranging from embarrassment to serious legal sanctions or fines. Litigants that fail to preserve properly are subject to a wide variety of consequences, including brand damage, additional costs for third-parties to review or search for data, court sanctions, directed verdicts or instructions to a jury that it can view a defendant s failure to produce data as evidence of culpability. REGULATORY OBLIGATIONS TO PRESERVE DATA There are a large and growing number of regulatory obligations to preserve . Some of the higher profile requirements are: Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 requires all public companies and their auditors to retain such relevant records as audit workpapers, memoranda, correspondence and electronic records including -- for a period of seven years. Company officers are obliged to report internal controls and procedures for financial reporting and auditors are required to test the internal control structures. Businesses have to ensure employees preserve information whether paper or electronic-based that would be relevant to the company s financial reporting. Health Insurance Portability and Accountability Act of 1996 (HIPAA) All organizations operating in the healthcare field need to comply with HIPAA to ensure the safety of Protected Health Information. Organizations are required to protect the data from unauthorized users, as well as to retain for six years a broad range of documentation regarding their compliance. Securities and Exchange Commission Rules Members of national securities exchanges, brokers and dealers are obliged to preserve all records for a minimum of six years, the first two years in an easily accessible place (SEC Rule 17a-4). The affected records are broad and encompass originals of communications generated and received by individuals within financial institutions, including inter-office memoranda and internal audit working papers. Also included are automated messages sent to all customers, which could include blasts. The records may be "immediately produced or reproduced on 'micrographic media' [microfilm, microfiche or similar] or by means of 'electronic storage media'. Among the many other requirements for data retention are FINRA 3010, the Investment Advisors Act of 1940 (hedge funds), the Gramm-Leach-Bliley Act, IDA 29.7, FDA 21 CFR Part 11, OCC Advisory, the Financial Modernization Act 1999, Medicare Conditions of Participation, the Fair Labor Standards Act, the Americans with Disabilities Act, the Toxic Substances Control Act, the UK Companies Act, the UK Company Law Reform Bill - Electronic Communications, the UK Combined Code 2010 Osterman Research, Inc. 4

6 on Corporate Governance 2003, the UK Human Rights Act, Basel II, and the Markets in Financial Instruments Directive. Financial Industry Regulatory Authority (FINRA) FINRA is a non-governmental regulator formed in 2007 by the merger of various functions of the New York Stock Exchange and the National Association of Securities Dealers. FINRA manages a wide variety of rules that are imposed upon the more than 5,000 brokerage firms and nearly 675,000 registered representatives it oversees. Model Requirements for the Management of Electronic Records (MoReq) MoReq is a specification, originally developed in 2001, that defines the functional requirements for the manner in which electronic records are managed in an Electronic Records Management System. MoReq has been used widely in Europe and has been updated with MoReq2. The regulations above are but a very small sample of the regulations focused on data retention that impact archiving requirements and practices. MANAGING STORAGE GROWTH Organizations don't have to be large to experience significant storage growth. The dual drivers of cheaper disk storage and the increased size of messages, thanks to attachments such as images and videos, is fueling the storage explosion. Messaging storage is growing at an average of 30%+ annually, which means that a terabyte of storage today will swell to nearly 2.5 terabytes in just three years. Just over one-half of respondents (52%) to a February 2009 survey of messaging decision makers by Osterman Research said they either had a need or a strong need to slow the growth of messaging-related storage. Increasing message size was the leading problem for organizations, cited by 54% of respondents worse than spam or malware. Archiving can be a very useful tool in reducing the volume of storage on servers. By migrating s and attachments to the archive, users can easily search for content directly from the archive. The advantages of using an archive to control storage growth include: Large messages and files are removed from live storage, resulting in better performance and faster backups and restores. Single-instance-storage and advanced compression techniques can be used for more efficient storage of data on an archive. IT can continue to impose quota limits on end users in order to keep stores relatively small, but users rarely bump into these limits because content that consumes significant storage space is migrated from server stores to the archive Osterman Research, Inc. 5

7 DISASTER RECOVERY Business reliance on services is now uncompromising. When a mail server is down, even just for an hour or two, core business operations are seriously impaired. Valuable corporate data cannot be accessed and important documents or messages that are expected or need to be sent remain undelivered. A non-functional mail server effectively shuts down key parts of an organization s business operation. The onset of a major outage such as a flood, fire, hurricane, etc. is an occurrence that could be devastating to a small or mid-size business. The speed by which a business confronted with a major disaster can access its data and restore messaging services may determine the company s ability to survive such a disaster. Many organizations simply choose to overlook this possibility and take a chance that it will never happen to them. But the very real impact that natural disasters and terrorism can have on a business is increasingly causing concern among executives in businesses of all sizes. The displacement of entire communities after disasters such as Hurricane Katrina has lead many business managers to reconsider their emergency measures. Although is just one of many business services that would be affected by such an outage, as the life-blood of the business its loss could be devastating. Businesses are increasingly considering the value of continuity the ability for an organization to access data and services soon after a major outage. Summary Because of their dependence on , small-to-midsize businesses face storage challenges that are similar in nature and criticality to those faced by larger enterprises. However, the cost and complexity of archiving solutions have typically been prohibitive for SMBs because most solutions are designed for the needs of the large enterprise or for the unique requirements of specialized industries. Most organizations, as a result, continue to rely on traditional backup and restore procedures, combined with a hope that the need to quickly find messages from backup tapes will never arise. Increasing demands of users, combined with the emerging acceptance of electronic correspondence as legal business records, however, has resulted in the need for organizations of all sizes to have a searchable corporate repository of messages dating back many years. About Jatheon s Archiving Solution The Jatheon PnC 2 line of SMB archiving solutions is a family of vendor-neutral archiving appliances that automatically capture a copy of every message that passes through the mail-server. It also provides users with a powerful easy-to-use search capability to help them instantly find archived messages, even those that are many years old Osterman Research, Inc. 6

8 The Jatheon PnC 2 line of SMB archiving solutions start with the PnC 100, which has 700GB of on board virtual storage (ideal for small business with less than 50 users). The family of appliances scale up to the PnC which has 50TB of on board virtual storage, suitable for any mid to large enterprise. The primary way messages are captured is through journaling, which is the process by which is forwarded from the mail server to the Jatheon archiving appliance. At the same time messages are captured by the appliance they are also indexed, including the header information, message body content, and any attachments. The search functionality provides users with the ability to search for messages. Searching the archive can be as simple or as detailed as the user would like. A simple search may include an address, a name or a word. A more detailed search could contain date ranges, phrases, bcc field, stock symbols, conversations between two parties and many other commonly used search criteria. After specific messages have been found the user has a number of useful options: View Messages: A message can be viewed while the message is still in the archive. Restore to mailbox: A message can be returned to a users inbox. Forward messages: Users can forward the message in its original form or as a link. Export messages: Messages can be exported to IMAP or to PDF. And many others useful options OFFSITE REPOSITORY OPTION When the mail-server s journaling capability is used to send copies of messages automatically to the Jatheon PnC 2 system, simply adding a second archiving location (off-site) to the journal configuration will result in messages concurrently captured in two locations. In the event of a major stoppage of service, the customer can be assured of immediate access to a duplicate, up-to-date repository in the offsite facility Osterman Research, Inc. 7

9 OTHER CAPABILITIES The Jatheon PnC 2 system offers SMB customers a combination of compliance-related archiving features: Automatic capture By capturing all messages automatically there is no way possible for users to bypass the archiving system or to prevent a message from being archived by deleting it immediately after it has been sent. With the Jatheon PnC 2 system, archiving of messages is not left up to the policy awareness and interpretations of individual users. Search message header, content or attachments Users, managers or compliance officers can search for messages using header information, content of message body, as well as attachment file names, types and content. Users cannot modify or delete messages Jatheon users can view, export, return to inbox or forward archived messages, but they cannot modify or delete messages. Preservation of original message The content and format of captured messages is fully preserved in its original format. A complex algorithm can be run on any searched message to verify its integrity and prove the message hasn t been tampered with. Comprehensive Reporting and Full Audit Trail System logs report on a wide variety of user and system activities. All system activities are recorded in audit trail. Legal Hold The preservation of all relevant can be captured under legal hold when litigation is reasonably anticipated. Remote System Monitoring Jatheon s archiving appliance are remotely monitored offering greater security and protection Osterman Research, Inc. 8

10 For More Information Jatheon Technologies, Inc. British Colonial Building 8 Wellington Street East, Mezzanine Level Toronto, Ontario, Canada M5E 1C or info@jatheon.com 2010 Osterman Research, Inc. All rights reserved. No part of this document may be reproduced in any form by any means, nor may it be distributed without the permission of Osterman Research, Inc., nor may it be resold or distributed by any entity other than Osterman Research, Inc., without prior written authorization of Osterman Research, Inc. Osterman Research, Inc. does not provide legal advice. Nothing in this document constitutes legal advice, nor shall this document or any software product or other offering referenced herein serve as a substitute for the reader s compliance with any laws (including but not limited to any act, statue, regulation, rule, directive, administrative order, executive order, etc. (collectively, Laws )) referenced in this document. If necessary, the reader should consult with competent legal counsel regarding any Laws referenced herein. Osterman Research, Inc. makes no representation or warranty regarding the completeness or accuracy of the information contained in this document. THIS DOCUMENT IS PROVIDED AS IS WITHOUT WARRANTY OF ANY KIND. ALL EXPRESS OR IMPLIED REPRESENTATIONS, CONDITIONS AND WARRANTIES, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE DISCLAIMED, EXCEPT TO THE EXTENT THAT SUCH DISCLAIMERS ARE DETERMINED TO BE ILLEGAL Osterman Research, Inc. 9

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